Asbestos and Mass Torts with Fraudulent Victims

Abstract:     
Deterrence and compensation goals should be distinguished, and compensation priorities should change in response to the deterrence goal. This has immediate implications for the problem of handling marginal and fraudulent claims in asbestos litigation. Where the deterrence goals come to the forefront, for example in instances of reckless exposure, it may be desirable for courts to require defendants to pay damages that are not transferred to any claimants. Where the deterrence goals are less compelling, as in instances of ordinary negligence, the importance of weeding out marginal and fraudulent claims becomes paramount. I consider optimal penalties for attorneys who bundle fraudulent claims.

Number of Pages in PDF File: 19

Keywords: asbestos litigation, deterrence goals, compensation goals, marginal and fraudulent claims, bundling of fraudulent claims

JEL Classification: K00, K4, K13

Accepted Paper Series